Recently, POSCO Holdings announced a large-scale lithium investment plan as a core strategy to realize its vision of “Materials for the Nation,” laying a critical foundation for its ambition to emerge as a global lithium player. The investments target equity stakes in lithium mines in Australia and mining rights to the Hombre Muerto salt lake in Argentina, enabling POSCO Holdings to secure stable lithium production capacity while strengthening its global competitiveness. In this article, we take an in-depth look at the strategic significance of these investments and POSCO Group’s long-term lithium business outlook, together with Senior Research Fellow Jae-bum Park of the POSCO Research Institute.

Lithium is currently the most widely used material in electric vehicle batteries, yet its strategic value continues to rise rapidly. Beyond electric vehicles, lithium-based batteries are increasingly essential across a wide range of industries, including artificial intelligence, drones, next-generation aircraft, and space exploration. They also play a critical role in Energy Storage Systems (ESS), which store electricity generated from renewable energy sources such as solar and wind power. As demand continues to expand across these sectors, global efforts to develop faster and more efficient next-generation batteries are accelerating. Once commercialized, these advanced batteries are expected to drive a significant increase in lithium demand beyond current levels. In this context, lithium has firmly established itself as one of the most closely watched and strategically important raw materials worldwide.

Against this backdrop, POSCO Holdings, following extensive deliberation, decided to move forward with a large-scale lithium investment to strengthen its competitiveness in future advanced materials businesses. The initiative comprises two key pillars: an equity investment in lithium mines in Australia and the acquisition of mining rights to the Hombre Muerto salt lake in Argentina. These investments reflect POSCO Holdings’ strong commitment to securing a stable supply of high-quality lithium resources and positioning itself as a global lithium company.

Globally, only around ten lithium mines are classified as Tier-1, a designation reserved for assets with exceptionally high ore grades. Most of these are concentrated in Western Australia. POSCO Holdings plans to acquire equity stakes in two such Tier-1 assets: the Wodgina mine and the Mt Marion mine.

▲ POSCO Holdings, through a joint venture intermediate holding company established with Australia’s Mineral Resources, holds a 30% stake in the Wodgina mine (left) and the Mt. Marion mine (right). (Right photo source: Mineral Resources website)

The Wodgina mine has officially confirmed reserves of approximately 6.5 million tonnes of lithium carbonate equivalent (LCE)*, the standard reference form for lithium used in battery materials. Lithium at Wodgina is produced in the form of spodumene concentrate, which undergoes beneficiation to increase lithium content. With spodumene grades reaching approximately 5.5%, the Wodgina mine is widely regarded as a top-tier lithium asset. The Mt Marion mine likewise holds around 2.1 million tonnes of LCE in reserves, with spodumene concentrate grades approaching 5%, and is therefore also recognized as a high-quality lithium resource.

*LCE (Lithium Carbonate Equivalent): a standardized measure expressing lithium content in terms of lithium carbonate.

Currently, Mineral Resources holds a 50% stake in each mine. POSCO Holdings plans to establish a jointly owned intermediate holding company with Mineral Resources and invest approximately USD 765 million (around KRW 1 trillion) to acquire a 30% stake in the holding company.

By securing equity stakes in the Wodgina and Mt Marion mines, POSCO Holdings expects to stably secure approximately 270,000 tonnes of lithium concentrate per year, reflecting planned production capacity expansions at both sites. This volume is sufficient to produce around 37,000 tonnes of lithium hydroxide—enough to supply batteries for approximately 860,000 electric vehicles. Both mines are capable of producing spodumene concentrate, meaning the investment is expected to generate revenue not only through concentrate sales, but also by securing a stable supply via long-term offtake agreements.

In hard-rock lithium operations, raw material costs account for a substantial portion of total production costs, making integration between mining and downstream processing a critical determinant of cost competitiveness. Even with optimized production processes, there are inherent limits to reducing raw material costs. Accordingly, this investment provides a strategic foundation for generating raw material sales revenue, mitigating exposure to price volatility, and improving overall operational efficiency across the value chain.

In addition to its Australian mine investments, POSCO Holdings plans to acquire additional mining rights at the Hombre Muerto salt lake in Argentina. In 2018, the company already secured mining rights covering approximately 25,000 hectares in the northern portion of the salt lake, which spans a total area of roughly 60,000 hectares. Hombre Muerto is widely regarded as one of the world’s highest-quality brine resources, characterized by high lithium concentrations and low impurity levels. In light of expectations for rapidly rising global lithium demand, POSCO Holdings decided to pursue the additional acquisition.

The newly acquired area is adjacent to POSCO Holdings’ lithium processing plant currently under construction. The mining rights are held by NRG Metal, the Argentine subsidiary of Canadian company Lithium South. POSCO Holdings plans to acquire a 100% stake for approximately KRW 100 billion, enabling operational synergies with its existing salt lake assets.

The newly acquired salt lake asset is estimated to contain approximately 1.58 million tonnes of LCE, with an average lithium concentration of 736 mg/L, and is considered a premium brine resource due to its low impurity levels. Because the asset is located within the same Hombre Muerto salt lake already operated by POSCO Holdings, the brine composition is highly similar. This allows the company to leverage existing extraction processes, local infrastructure, and operational experience, creating favorable conditions for producing lithium at a competitive cost.

In parallel, POSCO Holdings is developing Direct Lithium Extraction (DLE) technology, moving away from the conventional evaporation pond method that requires several years. DLE offers shorter processing times, higher recovery rates, reduced land requirements, and lower water and environmental impact, making it a promising next-generation lithium extraction technology. With the additional mining rights secured, POSCO Holdings will be able to expand its lithium carbonate production infrastructure. Once DLE technology is fully validated and commercialized, the company expects to achieve more economical and efficient lithium production.

▲Ombre Muerto lithium salt lake, Argentina.

POSCO Group has established a foundation to produce lithium hydroxide domestically starting in 2024 by securing a supply of spodumene mined in Australia. This strengthened cooperation has expanded into equity investments in Australian lithium mines and broader collaboration with leading Australian research institutions, reinforcing R&D capabilities in critical minerals such as lithium and rare earth elements.

▲ POSCO Holdings signed an MOU with the Australian Nuclear Science and Technology Organisation (ANSTO) on November 19 for critical minerals technology development. From left: Ki-soo Kim, POSCO Group CTO, and Oleh Nakone, Group Executive at ANSTO.

In May, POSCO Holdings became the first Korean company to establish a dedicated overseas resource research hub with the launch of the Australia Critical Minerals R&D Lab. In November, it signed an MOU with the Australian Nuclear Science and Technology Organisation (ANSTO), Australia’s leading government-affiliated research institute and a central hub for critical minerals R&D. Through this partnership, the two organizations plan to pursue joint research projects in refining technologies and advanced material characterization, while holding regular technical exchange forums to strengthen global technological competitiveness.

By securing premium lithium resources, POSCO Group is establishing a stable supply base that will enable it to compete with top-tier global lithium producers over the long term. Worldwide, 65 companies are preparing for lithium production. Based on projected 2025 output, the top five producers are Albemarle, Ganfeng Lithium, SQM, Rio Tinto, and Tianqi Lithium.

Their primary competitive advantage lies in ownership of large-scale, high-grade lithium resources. Through this investment, POSCO Holdings is expected to secure annual lithium production capacity of approximately 93,000 tonnes by 2026—exceeding the roughly 70,000 tonnes produced by Tianqi, currently ranked fifth globally. Once ramp-up is complete and production stabilizes, POSCO Group has a strong chance of entering the global top 10 lithium producers.

By securing both spodumene from hard-rock mines and lithium from salt lakes, POSCO Holdings is also well positioned to expand refining capacity as market demand grows. This allows consideration of investments not only in lithium hydroxide, but also lithium carbonate, reducing supply-demand risks while diversifying the supply chain. Going forward, POSCO Group will continue to closely monitor lithium market conditions and policy developments, adjusting investment scale and timing with flexibility.

The recent Australian mine investments and the additional acquisition of salt lake mining rights in Argentina clearly demonstrate that POSCO Holdings’ future growth strategy is progressing successfully—and that its blueprint for securing premium lithium resources is steadily being realized.

POSCO Holdings signed a memorandum of understanding (MOU) on November 19 with the Australian Nuclear Science and Technology Organisation (ANSTO), Australia’s leading nuclear science and technology agency, to initiate a formal joint research cooperation on the processing and refining of critical minerals.

▲ POSCO Holdings signed an MOU with the Australian Nuclear Science and Technology Organisation (ANSTO) on November 19 for critical minerals technology development. From left: Ki-soo Kim, POSCO Group CTO, and Oleh Nakone, Group Executive at ANSTO.

Founded in 1953, ANSTO is Australia’s premier government research organisation, with world-class achievements in nuclear science, radiation medicine, materials science, and environmental and mineral resources research. In particular, the ANSTO Minerals business unit has distinguished itself in the development and commercialisation of several refining technologies for critical and strategic minerals such as lithium and rare earth elements, in addition to its support to critical minerals project development in Australia. ANSTO is one of the pillars of the Australian Critical Minerals R&D Hub, a collaboration between ANSTO, Geoscience Australia and CSIRO.

The signing ceremony was held via video conference connecting ROK and Sydney, Australia, and was attended by Ki-soo Kim, Head of POSCO N.EX.T Hub and POSCO Group CTO, Oleh Nakone, Group Executive of Nuclear Medicine and Commercial at ANSTO, and other key representatives from both sides.

Under the agreement, POSCO Holdings and ANSTO will pursue various collaborative projects related to the development of innovative mid-stream and down-stream processing technologies for lithium, rare earths, and other critical minerals. The two parties will also strengthen joint research cooperation through regular technical exchange meetings.

POSCO Group is currently producing battery-grade lithium on a commercial scale from lithium-containing hardrock and brine feedstocks, while also conducting demonstrations of the next-generation of processing technologies, such as Direct Lithium Extraction (DLE) technology. In the rare earth sector, the Group is actively exploring commercialization and technology internalization through collaborations and MOUs with domestic and overseas research institutions. In May this year, POSCO established the Australia Critical Minerals R&D Laboratories, the first overseas resource-specialized research base set up by a Korean company in Australia.

Ki-soo Kim, POSCO Group CTO, stated:
“POSCO Group is expanding its business scope beyond steel into the critical minerals sector, driving sustainable technological innovation. Today’s cooperation with ANSTO will serve as an opportunity to further strengthen the technological competitiveness of POSCO Group’s critical minerals business. By combining POSCO Group’s business capabilities with ANSTO’s critical and strategic minerals processing expertise, we will take the lead in the global critical minerals supply chain.”

Oleh Nakone, Group Executive Nuclear Medicine and Commercial at ANSTO, said:
“Through this collaboration with the POSCO Group, we can achieve the necessary innovation to enable both Australia’s and the Republic of Korea’s energy transitions in a sustainable way and diversify the supply chains of the economically significant critical minerals that both our countries require. Our applied R&D cooperation will deliver tangible results in the critical minerals sector.”

POSCO Holdings plans to continue expanding its network with major Australian research institutions, thereby enhancing its R&D capabilities in lithium, rare earths, and other critical minerals, and further boosting its global technological competitiveness.

Prioritizing the acquisition of high-quality resources… Chairman In-hwa Chang: “We will diversify the lithium supply chain and leap forward as the world’s No. 1 lithium company”

POSCO Holdings will invest a total of KRW 1.1 trillion to secure high-quality lithium resources in Australia and Argentina, aiming to strengthen its competitiveness in raw materials for secondary battery materials.

This initiative is part of POSCO Group’s secondary battery materials business strategy, which prioritizes securing high-quality resources through swift and aggressive investments in global lithium assets, thereby enhancing cost competitiveness and ensuring a stable supply of raw materials.

On November 11, POSCO Holdings decided to acquire a 30% stake in a newly established intermediate holding company of Mineral Resources, a leading Australian mining company. The investment amounts to approximately USD 765 million, or about KRW 1 trillion.

Through this investment, POSCO Holdings will be able to stably secure 270,000 tons of lithium concentrate annually from Mineral Resources’ globally top-tier lithium mines — the Wodgina Mine and the Mt. Marion Mine in Western Australia. This figure reflects the planned production capacity expansion of the two mines and is equivalent to producing 37,000 tons of lithium hydroxide, enough to power approximately 860,000 electric vehicles.

The strategic equity investment in the Australian lithium mines will allow POSCO Holdings to participate in mine management and secure dividend income, with plans to pursue phased business expansion into lithium concentrate refining when the market enters a full growth phase.

In addition, POSCO Holdings is accelerating the acquisition of high-quality brine lithium resources.

On November 5, POSCO Holdings decided to invest USD 65 million (approximately KRW 95 billion) to acquire 100% of the shares in the Argentine subsidiary of Lithium South (LIS), a Canadian resource development company that owns mining rights within the Hombre Muerto salt lake in Argentina.

Having already acquired key mining rights in the Hombre Muerto salt lake in 2018, POSCO Holdings will, through this adjacent mining rights acquisition, secure additional resources and land in one of the world’s highest-grade lithium deposits. The company expects strong synergies with its existing lithium projects in Argentina, leveraging already established infrastructure and operational know-how.

Chairman In-hwa Chang of POSCO Group stated, “Securing raw material competitiveness is paramount to becoming the world’s No. 1 lithium company. We will diversify the global lithium supply chain through active investments.”

Chris Ellison, CEO of Mineral Resources, said, “We are pleased to see our solid partnership with POSCO Group, which began with the Onslow iron ore mine project in Western Australia, expand into the lithium business. We look forward to combining our capabilities to continuously create value at the Wodgina and Mt. Marion mines.”

Since Chairman In-hwa Chang took office last year, POSCO Group has reorganized its business portfolio into “2 Core (Steel & Secondary Battery Materials) + New Engine (New Businesses).” Through future growth investments in its core businesses, the group aims to go beyond its long-standing mission of “patriotism through steelmaking” to realize “materials patriotism” by localizing secondary battery materials and contributing to the enhancement of national economic and industrial competitiveness.

▲ The Wodgina lithium mine in Western Australia, owned and operated by Australian Mineral Resources.

▲ Hombre Muerto lithium salt lake, Argentina.

Jeong-hu Hong, Lead Researcher Today, secondary battery materials are drawing attention as key drivers of future industries such as electric vehicles and energy storage systems. Among them, cathode materials are especially important, accounting for more than 35% of the total cost of the four major battery components—cathode, anode, electrolyte, and separator. This is because cathode materials determine not only a battery’s capacity and output but also its ability to store and release electrical energy.
At the Cathode Material Development Group, POSCO Future M Technology Research Institute, we conduct research on cathode materials, the core of EV batteries, and develop new technologies to bring them into commercial use.

Do-hyeop Park, Principal Researcher Cathode materials can be simply defined as a “source of lithium.” They are produced by combining lithium with precursors made of various metals such as cobalt, manganese, and nickel. The battery’s name, performance, and stability all depend on which metals are used. Batteries such as Lithium Cobalt Oxide (LCO), Nickel Cobalt Manganese (NCM), Lithium Iron Phosphate (LFP), and Lithium Manganese Rich (LMR), among many others using different metal combinations, are currently being developed. Our team, in particular, focuses on the development of LMR cathode materials. Recently, General Motors (GM) and Ford announced plans to launch electric vehicles using LMR batteries in 2028 and 2030, respectively, drawing significant attention to LMR in the global automotive market. Our team is fully committed to advancing LMR batteries, which are poised to become game-changers in the electric vehicle industry.

Gwang-eun Jeong, Principal Researcher Among the lithium-ion batteries currently used in electric vehicles, LFP batteries are the most widely adopted. These batteries are predominantly developed technologically by China. While these are highly stable and cost-effective, their energy density is somewhat limited. For instance, at -10°C, their performance drops to only 60–70% of full capacity. To overcome these limitations, a newly developed LMR battery has been introduced. LMR batteries significantly reduce the use of costly cobalt and nickel, while increasing the proportion of more affordable manganese. With higher energy density than LFP, they enable greater battery capacity and performance, significantly extending the driving range of electric vehicles. Moreover, unlike LFP batteries, which are difficult to recycle, LMR batteries offer superior recyclability and high lithium recovery rates.

Jeong-hu Hong, Lead Researcher The LMR battery demonstrates outstanding competitiveness not only in terms of cost and performance but also in sustainability. Of course, despite its many advantages, there are challenges that must be addressed before mass production can be realized. To prevent performance degradation, various technological advancements are required, including maintaining stable average voltages and developing surface coating techniques for cathode materials to suppress unnecessary gas generation. In China, a large-scale LFP mass production system is already in place, making a swift transition to LMR production challenging. As a result, innovative research and development are even more crucial. Our team, after an intricate R&D process, has successfully completed the development of LMR cathode materials and is now focusing on establishing techniques for mass production.

Do-hyeop Park, Principal Researcher We divided the R&D process into laboratory and pilot production stages. In the laboratory stage, we rapidly and accurately explored the basic characteristics and optimal combinations of cathode materials under specific process conditions. Through creativity and experimentation, we successfully identified the best material combinations, reducing costs while enhancing the performance of LMR cathode materials.

Ju-hyeon Yang, Principal Researcher As Do-hyeop Park mentioned, cathode production involves a calcination process, where various metal precursors such as nickel, cobalt, manganese, and aluminum are combined with lithium sources at high temperatures. During this process, we selected a variety of precursor candidates, evaluated their key physical properties, and identified the most promising materials for experimental application. By applying accumulated technical knowledge and analyzing the effects of variables throughout the development process, we successfully optimized LMR cathode materials, evaluating their initial battery capacities and lifespans. Through continuous refinement of material design, process conditions, and experimental testing, we were also able to assess the feasibility of mass production.

Jin-eun Kim, Principal Researcher This is not the end. Even if promising results are achieved in the laboratory, the performance of the developed cathode material may not be fully realized under conditions similar to those of mass production. Therefore, during the pilot stage, we adjusted loading amounts, production volumes, and sintering furnace conditions on lines that closely resemble actual mass production, repeatedly experimenting to identify the optimal production conditions.

Ji-su Kim, Principal Researcher In the laboratory stage, cathode materials can be sintered in quantities of 100 to 200 grams; however, customers occasionally request samples ranging from kilograms to tons. This means that during the pilot stage, cathode materials must be produced stably at the same performance level as those from the laboratory to allow customers to properly verify mass production feasibility. From our perspective, securing the optimal conditions for cathode material production made this stage particularly important.

Jeong-hu Hong, Lead Researcher Together with our team members, we conducted full-scale R&D to enhance the safety of the LMR process. Pilot lines require meticulous adjustment of conditions, as even slight process changes can significantly impact cathode performance. By repeatedly verifying various conditions and applying laboratory-designed firing processes to actual equipment, we achieved stable pilot production of cathodes with performance comparable to that secured in the laboratory, passing customer evaluations and finalizing the technology. Thanks to this work, we were able to secure optimal pre-mass production conditions and improve economic efficiency.

Gwang-eun Jeong, Principal Researcher I remember being quite flustered when we received a request from a customer to deliver pilot samples within just ten days. We had to simultaneously respond to the customer and optimize the material. In that situation, I decided to stay calm and divide roles among the team: I communicated with the customer to gather requirements, while Do-hyeop Park focused on optimizing experimental conditions. Thanks to everyone diligently working in their respective roles, we successfully met the customer’s requested delivery date and ensured proper material quality.

Do-hyeop Park, Principal Researcher At that time, with very little time remaining until the pilot sample delivery, it was challenging not only to produce samples but also to refine the material simultaneously. That’s when Gwang-eun Jeong, our team’s “maestro,” who perfectly coordinates our efforts, efficiently allocated roles. Thanks to this, we managed to produce the samples on time without any issues. It would have been impossible to accomplish this alone.

Jin-eun Kim, Principal Researcher There were moments during the pilot phase when performance fell short of expectations. Although the goals had been achieved in the lab, results in the pilot phase differed significantly, which was perplexing. We then collaborated to meticulously review each process step by step to identify the cause. By theoretically analyzing with Jeong-hu Hong and conducting repeated experiments with adjusted mixing times and sequences, we observed remarkable improvements in performance!

Jeong-hu Hong, Lead Researcher Currently, the global battery market’s core materials and component supply chains remain heavily concentrated in China, making the establishment of independent supply chains a critical task. Our foremost goal is to successfully commercialize LMR batteries with a stable supply chain and robust technical expertise. Moving forward, we plan to actively pursue research and development to create better batteries across multiple aspects, including enhancing material stability, securing cost competitiveness, and improving charge/discharge performance. To achieve this, I will collaborate closely with relevant departments such as production, quality, and sales. Ultimately, our team aims to join forces to successfully mass-produce LMR, a next-generation battery material, and become a future growth engine for the POSCO Group!

Sharing the latest trends in lithium refining technology and expanding technology-focused networks to contribute to global supply chain stability

POSCO Holdings hosted the 1st Korea–Australia Critical Minerals Forum 2025: Lithium Extraction Technologies jointly with Australia’s national science agency, CSIRO on October 23.

POSCO Holdings, which established the Australia Critical Minerals R&D Lab in May—the first resource-specialized research institute in Australia by a Korean company—has been continuously strengthening its R&D cooperation network with Australian critical mineral research institutions through joint forums and other initiatives.

The forum brought together participants from POSCO Holdings, POSCO Pilbara Lithium Solution, and from Korea: the Korea Institute of Geoscience and Mineral Resources (KIGAM), Gwangju Institute of Science and Technology (GIST), Seoul National University, and Hanyang University. From Australia, attendees included experts from the three national science agencies that collectively form Australia’s Critical Minerals R&D Hub—CSIRO, the Australian Nuclear Science and Technology Organisation (ANSTO), and Geoscience Australia—as well as academic representatives from The University of Melbourne and Murdoch University.

Given the participants were based in both Korea and Australia, the forum was conducted online, connecting Seoul POSCO Center, Pohang POSCO N.EX.T Hub, and major Australian cities including Sydney, Melbourne, Perth, and Canberra.

In July, representatives from Australian mineral research institutions and universities visited the Pohang POSCO N.EX.T Hub to exchange technologies in the field of critical mineral raw materials, agreeing to create synergies through ongoing technical exchanges and research cooperation. Following this, in September, POSCO Holdings signed a memorandum of understanding with CSIRO on research cooperation in carbon reduction steel technologies and critical mineral refining technologies, continuing to explore synergy creation opportunities.

At the forum, POSCO Group, Korea’s leading mineral research institutions and universities, and Australia’s key research organizations engaged in in-depth discussions on the latest refining technologies for ore and brine lithium, Direct Lithium Extraction (DLE) and other innovative technologies, as well as Korea–Australia cooperation strategies for building a sustainable lithium supply chain.

Ki-soo Kim, Head of POSCO N.EX.T Hub, stated:

“POSCO Group is not only commercially producing battery-grade lithium from ore and salt lakes, but also conducting demonstrations of next-generation technologies such as Direct Lithium Extraction (DLE). The core of competitiveness in the lithium business lies in securing superior technology. To this end, we will continue to pursue closer research cooperation with experts from both countries.”

Dr. Yulia Uvarova, Deputy Director of CSIRO Mineral Resources, said:

“Australia and Korea will be the most important partners in preparing for the era of energy transition. Let us join forces to lead the global critical minerals industry through technological innovation.”

POSCO Holdings plans to continue expanding its technology-focused network for critical minerals through diverse collaborations with Australia, thereby contributing to the stabilization of the global critical minerals supply chain.

▲ On October 23, POSCO Holdings held the 1st Korea-Australia Core Minerals Forum in collaboration with the Commonwealth Scientific and Industrial Research Organization (CSIRO) of Australia.

As part of its global lithium strategy, POSCO wraps up DLE technology development and shifts focus to investment and commercialization of North American brine resources

POSCO Holdings has become the first Korean company to launch a demonstration project for Direct Lithium Extraction (DLE) technology in North America, as part of efforts to establish a localized lithium supply chain.
*Demonstration: the process of testing and verifying a new technology or product under real-world conditions

POSCO Holdings signed a memorandum of understanding (MOU) on June 30 with Australian resource development company Anson Resources to establish and operate a demo plant to demonstrate its DLE technology.

The plant will be built on a site in Green River City, Utah, where Anson holds lithium brine rights. POSCO aims to evaluate the commercial viability of its DLE technology through this initiative.

This demo plant investment is part of POSCO Group’s secondary battery materials strategy, which centers on securing additional lithium resources and advancing future technological competitiveness. POSCO Holdings is currently reshaping its business portfolio under the “2 Core + New Engine” strategy, with a strong focus on expanding the lithium supply chain within its secondary battery materials segment.

Based on the successful operation of the U.S. demo plant, POSCO Holdings plans to bring its independently developed DLE technology to market and accelerate investment and commercialization efforts for untapped lithium brine resources across North America.

Set to break ground next year, the DLE demo plant represents a major strategic investment by POSCO Group as it works to lead in securing future-critical technologies essential to the growth of its lithium business in North America.

The conventional method of extracting lithium from brine involves solar evaporation ponds, which are only commercially viable in regions with strong and consistent sunlight. In contrast, DLE is an innovative process that enables the efficient extraction of lithium from low-concentration brine without the need for large-scale evaporation ponds. This makes DLE a critical technology for developing lithium resources in North America. As a result, global lithium producers are increasingly turning to DLE to unlock low-grade brine resources that were previously considered uneconomical.

Under the MOU, Anson Resources will provide the lithium feedstock and the project site, while POSCO Holdings will conduct a full-scale evaluation of the business potential of its DLE technology. Depending on the results of the demonstration, the two companies will consider forming a strategic partnership and exploring further collaboration.

Meanwhile, POSCO Holdings has already launched two major lithium production facilities: a 25,000-ton-per-year brine-based plant in Argentina, and a 43,000-ton-per-year hard rock lithium plant in the Yulchon Industrial Complex in South Korea. Combined, these plants provide an annual lithium hydroxide production capacity of 68,000 tons, enough to power approximately 1.6 million electric vehicles.

Planning to Establish a Lithium Production Plant with an Annual Capacity of 30,000 Tons… Evaluating Optimal Plant Sites Including Korea

Diversifying Lithium Sources Following Argentina’s Brine Lithium and Australia’s Pilbara Minerals’ Ore Lithium

POSCO Holdings has joined forces with Hancock Prospecting, an Australian mining company, to strengthen the supply chain for lithium used in Rechargeable battery materials.

▲POSCO Holdings and Australian mining company Hancock Prospecting signed a business agreement on lithium cooperation via a video conference connecting Korea and Australia. From left: POSCO Holdings’ Jun-hyung Kim, Head of Rechargeable Battery Materials; Hancock’s Daniel Wade, Business Development Manager; Hancock’s CEO Garry Korte; and POSCO Holdings’ Lee Seong-won, Head of Lithium Business Team.

On December 9, POSCO Holdings and Hancock Prospecting formalized their collaboration by signing a business agreement on lithium cooperation. The signing ceremony was conducted via video conference between Korea and Australia, with attendance from POSCO Holdings’ Jun-hyung Kim, Head of Rechargeable Battery Materials (Senior Executive Vice President), and Garry Korte, CEO of Hancock Prospecting, among other senior executives from both companies.

Under the agreement, POSCO Holdings and Hancock Prospecting will pursue a lithium business venture with an annual production capacity of 30,000 tons. The two companies will jointly evaluate optimal sites for establishing the lithium production plant, considering multiple countries, including Korea. Subsequent stages will specify detailed aspects such as investment amounts.

Through this collaboration, POSCO Holdings aims to secure an additional stable supply chain for lithium raw materials, free from regulations imposed by the Foreign Executive Order Committee (FEOC) of the United States, by leveraging Hancock’s diverse mining assets. Additionally, POSCO Holdings will enhance its lithium value chain—from lithium mining and brine extraction to lithium hydroxide production, cathode materials, and recycling—strengthening the group’s overall lithium infrastructure.

Jun-hyung Kim, Head of Rechargeable Battery Materials, stated, “POSCO Holdings has built a long-standing partnership with Hancock Prospecting based on mutual trust. In this lithium business collaboration, we will explore the optimal business framework and achieve successful outcomes.”

Hancock Prospecting, headquartered in Perth, Western Australia, specializes in mining and primarily generates revenue from iron ore operations. The company is diversifying its business into lithium, natural gas, and rare earth elements. Since 2010, POSCO Group has expanded its collaboration with Hancock Prospecting, starting with a 12.5% investment in Hancock’s Roy Hill iron ore mine. In 2022, POSCO International and Hancock jointly acquired Senex Energy, an Australian natural gas company, further broadening the scope of their partnership across the POSCO Group.

POSCO Holdings is leveraging the opportunity presented by the Rechargeable battery market’s stagnant growth to secure premium lithium resources from mines and brine sources actively. This strategic move aims to expand the resource supply chain and enhance business capabilities to capture a leading position in the lithium market as conditions improve. As of 2024, POSCO Holdings has secured a lithium production capacity of 68,000 tons annually, with the completion of facilities producing 25,000 tons of brine lithium in Argentina and 43,000 tons of ore lithium.

Prime Minister Duck-soo Han said, “This marks a pivotal turning point for POSCO Group as it strides toward becoming a global leader in the lithium industry. The government will not spare any efforts in providing full support to the sector”

Chairman In-hwa Chang said, “POSCO Group will ensure resource sovereignty not only in steel but also in rechargeable battery materials. By securing a diverse range of lithium resources, we are paving the way to become a global top-tier lithium company through a stable domestic supply”

By building a domestic supply chain for lithium hydroxide, a key material for rechargeable batteries, POSCO has made it possible to reduce delivery times and logistics costs. POSCO Pilbara Lithium Solution will provide up to 30,000 tons per year to POSCO Future M and has signed a three-year agreement with SK On for up to 15,000 tons

POSCO Group has completed a production system capable of producing 43,000 tons of lithium hydroxide annually for rechargeable batteries, localizing a key mineral essential for the rechargeable battery industry and establishing a stable supply chain.

POSCO Pilbara Lithium Solution, a subsidiary of POSCO Group, completed the construction of its second lithium hydroxide plant, based on ore, on November 29 at the Yulchon Industrial Complex in Jeollanam-do. This milestone, achieved just one year after the completion of the first plant in November last year, establishes a total lithium production system with an annual capacity of 43,000 tons. This output represents a scale sufficient to support the production of approximately 1 million electric vehicles.

POSCO Pilbara Lithium Solution, established in 2021 as a joint venture between POSCO Holdings and Australian mining company Pilbara Minerals, imports raw lithium ore from Australia to produce lithium hydroxide for rechargeable battery materials in Korea.

▲ POSCO Group completed construction of POSCO Pilbara Lithium Solution’s second lithium hydroxide plant in the Yulchon Industrial Complex in Jeollanam-do on November 29. From the left, Korea Development Bank Chairman Seog-hoon Kang, Pilbara Minerals outside director Steve Scudamore, Australian Ambassador to Korea Jeff Robinson, POSCO Group Chairman In-hwa Chang, Prime Minister Duck-soo Han, South Jeolla Province Governor Young-rok Kim , National Assemblyman Hyang-yup Kwon, and Ministry of Trade, Industry and Energy Industrial Policy Director Seung-Yeol Lee.

The completion ceremony was attended by Prime Minister Duck-soo Han, South Jeolla Province Governor Young-rok Kim, Lawmaker Hyang-yup Kwon, Director General for Industrial Policy Seung-Yeol Lee from the Ministry of Trade, Industry and Energy, Chairman of the Korea Development Bank Seog-hoon Kang, Gwangyang Mayor In-hwa Jeong, global battery company representatives, POSCO Group Chairman In-hwa Chang, POSCO Pilbara Lithium Solution CEO Kyung-seop Lee, Australian Ambassador to the Republic of Korea Jeff Robinson, and Pilbara Minerals Independent Director Steve Scudamore.

Prime Minister Duck-soo Han remarked, “The completion of this lithium plant will be a groundbreaking turning point for POSCO Group in its journey to becoming a global leader in the lithium industry. The government will spare no effort in supporting rechargeable battery companies through comprehensive measures, including infrastructure, R&D, taxation, financing, and more.”

Australian Ambassador to the Republic of Korea Jeff Robinson said, “The comprehensive completion of POSCO Group’s lithium plant is a testament to the trust and collaboration built between Korea and Australia over many years. It is a significant milestone for both nations in the joint development of the rechargeable battery material industry.”

Chairman In-hwa Chang stated, “Amid changes in the global regulatory environment, POSCO Group has ensured a stable domestic supply of lithium, a key mineral for rechargeable battery materials, thereby opening the path to material sovereignty. Building on its leadership in steel, the group has also contributed to national prosperity in the rechargeable battery materials sector and will grow into a leading global lithium company in the future.”

In 2018, POSCO Holdings proactively acquired a 4.75% stake in Pilbara Minerals and signed a 20-year contract for the stable supply of lithium ore mined from Pilbara Minerals’ Pilgangoora mine. This measure secures a reliable raw material supply chain. Additionally, the two companies strengthened their long-term partnership by investing in POSCO Pilbara Lithium Solution, with POSCO Holdings holding an 82% stake and Pilbara Minerals owning 18%.

POSCO Pilbara Lithium Solution applied two distinct lithium extraction technologies to its plants: the first plant, completed in November last year, uses a proprietary lithium extraction technology developed by POSCO Group, while the second plant uses a commercially proven technology operated by other global companies. POSCO Group’s proprietary lithium extraction method, based on the principle of electrodialysis, offers advantages such as the recovery and reuse of byproducts during production and minimal byproduct generation. In contrast, the commercial extraction technology is universally used by leading lithium producers in Australia, China, and other countries, providing proven reliability. By operating both plants, POSCO Group aims to strengthen its technical foundation to flexibly expand its business in response to future changes in the business environment.

Moreover, the lithium hydroxide produced by POSCO Pilbara Lithium Solution is processed entirely within free trade agreement (FTA) member countries, as it uses Australian raw materials and is refined in Korea, making it free from geopolitical risks. Unaffected by changes in the regulatory environment for raw materials used in rechargeable batteries in countries such as the U.S. and the EU, it is easy to explore both domestic and international markets, leading to the successful securing of supply contracts from the early stages of operation.

POSCO Pilbara Lithium Solution plans to supply 20,000 tons of lithium hydroxide annually to POSCO Future M, the Group’s cathode material producer, starting from this amount and increasing it to a maximum of 30,000 tons in the future. On November 22, POSCO Pilbara Lithium Solution signed its first long-term contract with SK On to supply up to 15,000 tons over three years. In the future, POSCO Group aims to leverage business advantages such as shorter delivery times and reduced logistics costs from domestic lithium hydroxide production to expand its customer base both domestically and internationally.

By combining the 25,000 tons of lithium hydroxide from the first phase of its brine lithium plant in Argentina, completed earlier this year, with the 43,000 tons from its newly completed ore-based lithium plants, POSCO Group has established an annual production capacity of 68,000 tons, further strengthening its raw material capabilities for the rechargeable battery industry. Additionally, the Group is accelerating efforts to lead in next-generation materials and other innovative technologies.

Since its transition to a holding company structure in March 2022, POSCO Group has aimed to achieve balanced growth and maximize corporate value by focusing on seven core businesses, including △steel, △rechargeable battery materials, △lithium-nickel, △hydrogen, △energy, △construction-infrastructure, and △agri-bio. With the completion of the POSCO Pilbara Lithium Solution plant in November 2023, POSCO Group reached a milestone in building a full value chain in the rechargeable battery materials business from key raw materials to advanced materials production.

Completion of a Supply Chain for the Rechargeable Battery Material Industry Within 3 Years… Accelerating Investment with a Focus on High-Yield Raw Materials

Recently, the United States and the European Union have announced sector-specific regulatory policies, including the Inflation Reduction Act (IRA) and the Critical Raw Materials Act (CRMA), with the objective of developing a domestically centered network for the rechargeable battery industry. POSCO Holdings is directing its focus on securing key raw materials, such as lithium, to establish a resilient supply chain and build the capacity to adapt flexibly to market dynamics.

In particular, POSCO Holdings predicts that the value-added aspects of raw materials in the supply chain will continue to rise as the rechargeable battery materials market expands. It considers the next three years to be a crucial time to strengthen the supply chain in the rechargeable battery materials industry, and is accelerating investment focusing on materials that generate high returns.

▲Lithium processing site mined from an Australian mine acquired by POSCO Holdings (left) and Hombre Muerto Salt Lake in Argentina.

In 2018, POSCO Holdings strategically acquired stakes in a lithium ore mine in Pilbara, Australia, and exclusive lithium brine rights in Argentina to secure multiple stable sources of lithium raw materials.

Since then, POSCO Holdings successfully entered the market using resources from the Australian mine and Argentine brine. The company is now expanding its business by using unconventional lithium resources. Its goal is to secure a lithium production capacity of 423,000 tons by 2030 and become one of the top three global lithium companies.

[Ore Lithium] Successful Localization of Lithium Hydroxide Production with the Completion of Lithium Ore Production Facilities

Lithium ore production began on November 29 last year with the opening of the POSCO-Pilbara Lithium Solution Hydroxide Plant, which has an annual capacity of 21,500 tons.

▲POSCO Group completed the construction of the POSCO Pilbara Lithium Solution lithium hydroxide plant at Yulchon Industrial Complex in Jeollanam-do on November 29 last year. From the left, POSCO Future M President Kim Jun-hyung, POSCO Holdings Future Technology Research Institute Director Kim Ji-yong, Pilbara Minerals CEO Dale Henderson, Pilbara Minerals Chairman of the Board of Directors Anthony Kiernan, Chairman Choi Jeong-woo, National Assembly member Seo Dong-yong, Lee Seung-ryeol, Director of the Industrial Policy Office of the Ministry of Trade, Industry and Energy, and Park Chang-hwan, Deputy Governor of Jeollanam-do for Political Affairs.

This is the first commercial production of high-purity lithium hydroxide for electric vehicle batteries directly from lithium ore raw materials in Korea, and POSCO plans to increase the production capacity to 43,000 tons by 2024.

▲Overview of POSCO Pilbara Lithium Solution.

In addition, POSCO plans to not only expand its ongoing collaboration with Pilbara Minerals in Australia in the second phase, but also expand partnerships with promising lithium mines in Canada. The goal is to increase production of lithium hydroxide from lithium ore to 220,000 tons by 2030.

In particular, the entire process of producing lithium hydroxide at the POSCO Pilbara Lithium Solution plant, from sourcing raw materials (in Australia) to processing them (in South Korea), takes place in countries covered by the U.S. FTA. Therefore, benefits under the Inflation Reduction Act (IRA) are expected. Currently, only Korea and Australia have a trade agreement to produce lithium hydroxide from ore, with three plants, including the POSCO Pilbara Lithium Solution plant (excluding the U.S.).

[Brine Lithium] Establishing an annual production system of 100,000 tons by 2028…
Enhancing Lithium Self-Sufficiency

A commercial lithium brine plant is currently under construction in Argentina, aiming for completion in the first half of 2024. The first phase plant, with a capacity of 25,000 tons, is being built for upstream and downstream processes. In addition, construction of the second phase plant, also with a capacity of 25,000 tons, began in June last year. POSCO Group plans to transform the lithium carbonate generated in the second phase upstream process into lithium hydroxide in the subsequent downstream process at the Yulchon 1 Industrial Complex in Gwangyang, and supply it as a material for rechargeable battery cathodes.

▲Chairman Choi Jeong-woo and other guests are conducting a trial run at the groundbreaking ceremony for the first phase of the saltwater lithium project in Hombre Muerto Salt Lake, Argentina, on March 23, 2022. From the left, Byeong-ok Yoo (Vice President), head of POSCO Holdings’ eco-friendly future materials team, Ariel Schale, Federal Vice Minister for Industry at the Ministry of Production, Gustavo Saenz, Governor of Salta, Chairman Jeong-Woo Choi, Raul Jalil, Governor of Catamarca, Myeong-Soo Jang, Korean Ambassador to Argentina, Gwangbok Kim, CEO of POSCO Argentina.

▲POSCO Holdings held a groundbreaking ceremony for the second phase of the brine lithium upstream well at the Hombre Muerto salt lake in Argentina on June 28 (local time), and attendees are conducting a trial run. From the left, POSCO Argentina CEO Kim Kwang-bok, Federal Vice Minister for Industry José Ignacio, Korean Ambassador to Argentina Lee Yong-soo, Salta Governor Gustavo Sáenz, Yoo Byeong-ok, POSCO Holdings Vice President of Eco-friendly Future Materials, and Raúl Jalil. Governor of Catamarca and Federal Deputy Minister of Mining and Industry Fernanda Ávila.

POSCO intends to integrate the third and fourth phases into a 50,000-ton capacity to establish a 100,000-ton lithium production system from Argentine lithium brine by early 2028. The goal is to increase lithium self-sufficiency by extracting lithium from various sources such as brine, ore, and unconventional resources.

▲Overview of the saltwater lithium demo plant in Argentina.

In particular, for the second phase of lithium brine, POSCO plans to establish the upstream process in Argentina and the downstream process in South Korea. This will enable the timely supply of lithium to domestic cathode material plants such as POSCO FUTURE M and gain an advantageous position in the U.S. with the Inflation Reduction Act (IRA).

POSCO Group plans to cooperate with local partners and develop technologies for unconventional lithium resources, including exploring the lithium clay project in the U.S. and promoting an oil-field brine lithium business with the Invest Alberta Corporation in Canada. It also plans to build a system to produce 70,000 tons of unconventional lithium by 2030 and expand lithium production through recycling! Please support POSCO Group in all its efforts!